REG - Argo Blockchain PLC - £4.2 million Subscription by Institution

Argo BlockchainAnnouncement

02/12/2024 07:00

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RNS Number : 2779O  Argo Blockchain PLC  02 December 2024

Press Release

2 December 2024

Argo Blockchain plc

("Argo" or "the Company")

£4.2 million Subscription by Institution

Argo, a global leader in cryptocurrency mining (LSE: ARB; NASDAQ: ARBK), is
pleased to announce that it has raised gross proceeds of £4.2 million through
a subscription for its ordinary shares ("Ordinary Shares") by an institution
("Subscription"), the Company will issue 76,900,000 Ordinary Shares
("Subscription Shares") at a purchase price of 5.5 pence per Ordinary Share.

 

The net proceeds from the Subscription will support Argo's strategic plans and
working capital needs. These funds will help drive the potential relocation or
sale of mining equipment currently at the Helios facility in Texas, while
allowing the company to maintain its Bitcoin ("BTC") mining operations in
Quebec. Additionally, the funds will support previously announced efforts to
explore diversification into high-performance computing ("HPC"). Information
regarding the Company's financial position can be found in its Q3 results RNS
of 20 November 2024 and its interim half-year results RNS of 28 August 2024.

 

Argo's Chief Executive Officer, Thomas Chippas, commented, "This subscription
strengthens our balance sheet, moving Argo closer to execution of the HPC
opportunity at Baie-Comeau and Helios fleet movement, as described in the
Company's Q3 2024 Results Announcement released on 20 November 2024."

 

Subscription

 

The Subscription will be effected by way of a cashbox, involving the issue of
new Ordinary Shares for non-cash consideration. The institution will subscribe
for redeemable preference shares in Project Maple (Jersey) Limited, a new
Jersey-incorporated subsidiary of the Company ("JerseyCo"), in an amount equal
to the net proceeds of the Subscription.

 

The Company will allot and issue the Subscription Shares on a non-pre-emptive
basis to the institution in consideration of the transfer by the institution
of the redeemable preference shares in JerseyCo to the Company. Accordingly,
at the conclusion of this cashbox process, JerseyCo will be a wholly owned
subsidiary of the Company and its sole asset will be cash reserves
approximately equal to the net proceeds of the Subscriptioin. The Company will
then be able to access those funds by redeeming the redeemable preference
shares it holds in JerseyCo.  Further shareholder approval is not required to
effect the Subscription by way of a cashbox.

 

Prospectus and Admission

 

The Subscription Shares to be issued pursuant to the Subscription will rank
pari passu in all respects with the existing Ordinary Shares. However, Argo
does not currently have sufficient headroom for the Subscription Shares to be
admitted to the Official List maintained by the FCA and to trading on the
London Stock Exchange PLC's Main Market without the publication of a
prospectus. The Company has therefore agreed that it will use its reasonable
endeavours to procure admission of the Subscription Shares as soon as possible
following issue and allotment, as permitted and required by the UK Listing
Rules.

 

The securities being offered have not been, nor will they be, registered under
the United States Securities Act of 1933, as amended, and such securities may
not be offered or sold within the United States absent registration under U.S.
federal and state securities laws or an applicable exemption from such U.S.
registration requirements.

 

This announcement shall not constitute an offer to sell or the solicitation of
an offer to buy nor shall there be any sale of the securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such
jurisdiction.

 

Total Voting Rights

 

Following the Subscription, the Company will have a total of 717,250,353
Ordinary Shares in issue. No Ordinary Shares are held in treasury. The above
figure may be used by the Company's shareholders as the denominator for the
calculations by which they can determine whether they are required to notify
their interest in, or a change of their interest in, the Company under the
FCA's Disclosure Guidance and Transparency Rules.

This announcement contains inside information.

For further information please contact:

 Argo Blockchain
 Investor Relations                  ir@argoblockchain.com (mailto:ir@argoblockchain.com)
 Tennyson Securities
 Corporate Broker                    +44 207 186 9030

 Peter Krens
 Fortified Securities
 Joint Broker                        +44 7493 989014

 Guy Wheatley, CFA                   guy.wheatley@fortifiedsecurities.com
 Tancredi Intelligent Communication   argoblock@tancredigroup.com

 UK & Europe Media Relations

 

About Argo:

Argo Blockchain plc is a dual-listed (LSE: ARB; NASDAQ: ARBK) blockchain
technology company focused on large-scale cryptocurrency mining. With mining
facilities in Quebec, mining operations in Texas, and offices in the US,
Canada, and the UK, Argo's global, sustainable operations are predominantly
powered by renewable energy. In 2021, Argo became the first climate positive
cryptocurrency mining company, and a signatory to the Crypto Climate Accord.
For more information, visit (http://www.argoblockchain.com/)
www.argoblockchain.com (http://www.argoblockchain.com/) .

Forward looking statements

 

This announcement contains "forward-looking statements," which can be
identified by words like "may," "will," "likely," "should," "expect,"
"anticipate," "future," "plan," "believe," "intend," "goal," "seek,"
"estimate," "project," "continue" and similar expressions. Forward-looking
statements are neither historical facts nor assurances of future performance.
Instead, they are based only on the Company's current beliefs, expectations
and assumptions regarding the future of its business, future plans and
strategies, projections, anticipated events and trends, the economy and other
future conditions. Because forward-looking statements relate to the future,
they are subject to inherent uncertainties, risks and changes in circumstances
that are difficult to predict and many of which are outside of the Company's
control. The information in this announcement about future plans and
objectives of the Company, including the expectation to complete the
Subscription and the expected expenditure of the net proceeds of the
Subscription, are forward-looking statements. The Company's actual results and
financial condition may differ materially from those indicated in the
forward-looking statements. Therefore, you should not rely on any of these
forward-looking statements. Important factors that could cause the Company's
actual results and financial condition to differ materially from those
indicated in the forward-looking statements include, market and other
conditions, the principal risks and uncertainties listed in the risk factors
set forth in our Annual Report and Financial Statements and Form 20-F for the
year ended 31 December 2023, and our Interim Report as of 30 September 2024.

 

 

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